Integrated Technology Commercialization Steven P. Nichols Endowed Fellow, IC2 Director, Chair of Free Enterprise Professor of Mechanical Engineering Professor, IC2 Institute The University of Texas at Austin © Steven P. Nichols, 2009 February 2009 Integrated Technology Commercialization © Steven P. Nichols

Integrated Technology Commercialization

Steven P. Nichols

Endowed Fellow, IC2

Director, Chair of Free Enterprise

Professor of Mechanical Engineering

Professor, IC2 Institute

The University of Texas at Austin

© Steven P. Nichols, 2009

Operating Premise Adopt Adapt Create February 2009 © Steven P. Nichols

Adopt

Adapt

Create

Chair of Free Enterprise … to create and nurture a culture of technology innovation, creativity, and leadership at The University of Texas and the global community that we serve. February 2009 © Steven P. Nichols

… to create and nurture a culture of technology innovation, creativity, and leadership at The University of Texas and the global community that we serve.

Missions of University Universities create and disseminate knowledge Education Research Service © Steven P. Nichols

Universities create and disseminate knowledge

Education

Research

Service

Integrated Technology Commercialization “ Were Texas” “ What Starts Here Changes the World” © Steven P. Nichols, 2009 February 2009 Integrated Technology Commercialization © Steven P. Nichols

Integrated Technology Commercialization

“ Were Texas”

“ What Starts Here Changes the World”

© Steven P. Nichols, 2009

Entrepreneurial Infrastructure © Steven P. Nichols

© Steven P. Nichols ANALYSIS CREATIVITY CREATIVE VERSUS ANALYTICAL ASPECT OF ACADEMIC ENTERPRISE

© Steven P. Nichols

Professional Responsibility 101 © Steven P. Nichols 2009

© Steven P. Nichols

© Steven P. Nichols

© Steven P. Nichols

© Steven P. Nichols

UT SYSTEM 15 component institutions 9 general academic universities 4 medical schools 9 nursing schools Student Population 185,000 students Approx. 37,000 degrees awarded annually UT System employees: 61,800 personnel © Steven P. Nichols The University of Texas at Austin

UT SYSTEM

15 component institutions

9 general academic universities

4 medical schools

9 nursing schools

Student Population

185,000 students

Approx. 37,000 degrees awarded annually

UT System employees:

61,800 personnel

$12 billion operating budget), 18% from state general revenue $1.6 billion in indigent health care provided by UT System's health institutions $1.9 billion in research spending (FY 2005) -Consider the Flagship Institution--- © Steven P. Nichols The University of Texas at Austin

$12 billion operating budget),

18% from state general revenue

$1.6 billion in indigent health care provided by UT System's health institutions

$1.9 billion in research spending (FY 2005)

-Consider the Flagship Institution---

UT Austin annual enrollment of about 50,000 students 25% of students enrolled in graduate and professional programs awards the greatest number of doctorate degrees of any university in the nation one of the widest selections of study areas among major universities in the U.S. students from all 50 states and about 120 foreign countries © Steven P. Nichols The University of Texas at Austin

UT Austin

annual enrollment of about 50,000 students

25% of students enrolled in graduate and professional programs

awards the greatest number of doctorate degrees of any university in the nation

one of the widest selections of study areas among major universities in the U.S.

students from all 50 states and about 120 foreign countries

Active NAE Faculty Members © Steven P. Nichols

Who Cares? © Steven P. Nichols

Mix Is As Varied as Universities “ What starts here changes the world.” The University of Texas at Austin © Steven P. Nichols

“ What starts here changes the world.”

The University of Texas at Austin

Proposition Universities have obligations to support positive social change One of the most important mechanisms for universities to add social value is by adding economic value Technology has no inherent social value (except intellectual and academic) Universities do not commercialize technologies © Steven P. Nichols

Universities have obligations to support positive social change

One of the most important mechanisms for universities to add social value is by adding economic value

Technology has no inherent social value (except intellectual and academic)

Universities do not commercialize technologies

Office of Technology Commercialization Current Licensing Revenue FY 07-08 US $ 11.7 Million Office formed in 1997 (first license circa 1985) FY 01-02 Revenues approx. US$ 1.6 million Growing at approximately 25% per year Sponsored research US $450 Million (aprox.) © Steven P. Nichols

Current Licensing Revenue

FY 07-08 US $ 11.7 Million

Office formed in 1997

(first license circa 1985)

FY 01-02 Revenues approx. US$ 1.6 million

Growing at approximately 25% per year

Sponsored research US $450 Million (aprox.)

Business Units Architecture (Mature Business => Steady State) © Steven P. Nichols Customer Sales Manufacturing Science/Engineering Marketing Distribution Sales Customer Needs Product & Money Design Input Manufacturing Specifications Final Product

The Process of Technology Commercialization © Steven P. Nichols 3. Incubate to define Commercializ-ability 7. Promote adoption 9. Sustain commercialization 4. Mobilize resource for Demo 1. Imagine the dual (techno-market) insight Source: Jolly, Vijay. 1997. From Mind to Market . Bridges: Mobilizing the Stakeholder Subprocesses: Building the Value of New Technology 2. Mobilize Interest and endorse-ment 5. Demonstrate contextually in products and processes 6. Mobilize market consti-tuents 8. Mobilize complimentary assets for delivery

Knowledge Transfer Process © Steven P. Nichols Knowledge Generation Transfer Functions Social & Economic Value Added

© Steven P. Nichols University (Knowledge Generation: Intellectual Value Added) Research Research Results Graduates Faculty Driven Funding Sources Government (various levels) Universities Industrial Commercial Foundations and Not-for-Profits Individuals Gifts Etc.

© Steven P. Nichols University (Knowledge Generation) Funding Sources Graduates Faculty Consulting Faculty / Staff Departures Publications Non-traditional Transfer Functions Social Value Added Economic Value Added Natural Non-traditional Mechanisms:

© Steven P. Nichols THE TECHNOLOGY COMMERCIALIZATION PROCESS Later Phases of Commercialization Knowledge Creation Techno-market Opportunity Creation Specific Product/ Process Plan Commercial Demonstration/ Initial Operations University (Fundamental) Research Business Plan Competitions The Idea to Product® Program (Value Creation Concept) INNOVATION From Evans and Nichols in light of Jolly

Do you want to stop here? March 2008 Design Education © Steven P. Nichols

© Steven P. Nichols Knowledge Generation Natural Transfer Functions Non-traditional Transfer Functions Social & Economic Value Added

UT Partners in the Texas Alliance for Technology Commercialization © Steven P. Nichols DEPARTMENT OF BIOMEDICAL ENGINEERING Office of Technology Licensing Clint W. Murchison Chair of Free Enterprise Office of Sponsored Projects The University of Texas at Austin Office of the V. P. for Research Center for Nano- and Molecular Science & Technology Herb Kelleher Center for Entrepreneurship The College of Natural Sciences

Thank you. March 2008 Design Education © Steven P. Nichols

Examples of Economic Value Added from University of Texas (Based on fundamental research) Tracor National Instruments Nanotechnologies Inc. Dell Computer © Steven P. Nichols

Tracor

National Instruments

Nanotechnologies Inc.

Dell Computer

Lessons from the Past: Context of Technology Transfer © Steven P. Nichols Radian (Unitech) 974 Texas Nuclear Austron 164 Continuum (Texas Corporate Corp, TCC, Inc) 700 Texas Telesystems 120 Espy Huston 562 Pinson Associates 25 Meister Engineering Tracoustics 44 Key Concepts Gp. 5 Weed Instruments 98 SGE Inc. 9 Guerreros Photographic Gp. 4 Texas Research Inst. 100 Targa, Inc. 2 AMI 57 Spenco System 200 UT Austin TRACOR 2200 1955 1962 1969 1971 1972 1974 1975 1976 1980 1981 1984 Columbia Scientific (CSI) Cematco Nova Graphics 15 Sun X BPI 136 Zycor 48 Odessa Engineering

Entrepreneurial Infrastructure © Steven P. Nichols

Examples of Economic Value Added from University of Texas (Based on fundamental research) Tracor National Instruments Nanotechnologies Inc. Dell Computer © Steven P. Nichols

Tracor

National Instruments

Nanotechnologies Inc.

Dell Computer

Integrated Technology Commercialization Steven P. Nichols Endowed Fellow, IC2 Associate Vice President for Research The University of Texas at Austin © Steven P. Nichols, 2006 © Steven P. Nichols University of Oulu, Computer Engineering Laboratory University of Kuopio

Integrated Technology Commercialization

Steven P. Nichols

Endowed Fellow, IC2

Associate Vice President for Research

The University of Texas at Austin

© Steven P. Nichols, 2006

Design Education © Steven P. Nichols